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Base Runner, Incorporated manufactures baseball bats that go through two operations, Cutting and Sanding, before they are complete. Expected costs and activities for the two
Base Runner, Incorporated manufactures baseball bats that go through two operations, Cutting and Sanding, before they are complete. Expected costs and activities for the two departments are shown in the following table:
a. Compute a departmental overhead rate for the Cutting department based on machine hours. b. Compute a departmental overhead rate for the Sanding department based on machine hours.
\begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{2}{|l|}{ Cutting } & \multicolumn{2}{l|}{ Sanding } \\ \hline Directlaborhours & 50,000 & DLH & 5,000 & DLH \\ \hline Machinehours & 25,000 & MH & 50,000 & MH \\ \hline Overheadcosts & $50,000 & & $37,500 & \\ \hline \end{tabular}Step by Step Solution
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